Telstra fee hike highlights Broadband inequities

Source: (State MP for Benalla) Bill Sykes Media Release

Nationals Member for Benalla, Bill Sykes, said today an increasing trend by Telstra and other utility companies to shift to electronic billing systems highlights the need for the Brumby Government to lobby the Rudd Federal Government to meet its commitment to reach 98% of Australians through its Broadband upgrade project.

From September 14 Telstra customers who receive bills in the post or pay in person at an Australia Post outlet or Telstra Shop will be hit an extra $2.20 administration fee for each bill.

Dr Sykes said, “Telstra’s shift to an electronic billing system penalises those who wish/need to pay bills by conventional means. Further this highlights the broadening of the disadvantage gap by the Rudd Government’s $43 billion broadband upgrade which specifically excludes country communities of less than 1,000 people.

“A charge for customers paying their bills in person and receiving paper bills in the post directly disadvantages rural Victorians who remain on low speed dial-up or cannot be connected to the internet due to lack of coverage.

“The changes will also affect country Victorians unfamiliar with email and internet systems, in particular aged people (excluding pensioners who are exempt) and people with a disability,” Dr Sykes said.

The Labor Government’s broadband scheme, which promised 98% coverage prior to the 2006 election, has been downgraded to 90% coverage and excludes communities of less than 1000. That means people living in Devenish, Glenrowan, Swanpool, Jamieson, Lake Eildon, Tolmie, Strathbogie, Longwood, Murchison, King Valley, Mudgegonga and Tawonga will miss out.

“Without high-speed broadband coverage residents in these communities will have little choice but to cop the Telstra administration fee on the chin,” Dr Sykes said.

Telstra have said the changes were designed to cut costs and the new charges were in line with industry standards.

“What this means is that cost cutting measures are being passed onto the customer and that once again those living in rural areas will be disadvantaged.”

Telstra have also increased credit card payment fees from 0.69 percent to 1 percent. Pensioner Discount and Disability Program customers will be exempt from the fee. Health Care Card users will need to apply for individual exemptions.

“An increase in utility providers, such as Telstra and Optus, using paperless bill and payment systems means people in rural areas are being forced to rely more and more on internet services.”

Dr Sykes concluded: “The Brumby and Rudd Governments have a duty to ensure country Victorians are not disadvantaged by the lack of a regional broadband network and must provide high speed broadband coverage to everyone living in North East Victoria.”

Greg's comment:

The Labor Government’s broadband scheme, which promised 98% coverage prior to the 2006 election, has been downgraded to 90% coverage and excludes communities of less than 1000. That means people living in Devenish, Glenrowan, Swanpool, Jamieson, Lake Eildon, Tolmie, Strathbogie, Longwood, Murchison, King Valley, Mudgegonga and Tawonga will miss out.

I have lived in the King Valley for 10 years and find that, due of the lack of broadband access, there are few in the valley who have bothered to become Internet savvy.  I suspect the same would apply to all those other communities mentioned.

These are the very people that would benefit most in transacting over the Internet through E-commerce.  The move widens the IT gap between the urban and rural communities and, unless any broadband service becomes available, these rural communities will drift further into the remoteness of the bush.